Correlation Between American Express and EXXON
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and EXXON MOBIL P, you can compare the effects of market volatilities on American Express and EXXON and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in American Express with a short position of EXXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and EXXON.
Diversification Opportunities for American Express and EXXON
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and EXXON is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding American Express and EXXON MOBIL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXXON MOBIL P and American Express is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on American Express are associated (or correlated) with EXXON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXXON MOBIL P has no effect on the direction of American Express i.e., American Express and EXXON go up and down completely randomly.
Pair Corralation between American Express and EXXON
Considering the 90-day investment horizon American Express is expected to generate 2.09 times more return on investment than EXXON. However, American Express is 2.09 times more volatile than EXXON MOBIL P. It trades about 0.29 of its potential returns per unit of risk. EXXON MOBIL P is currently generating about -0.01 per unit of risk. If you would invest 27,147 in American Express on August 28, 2024 and sell it today you would earn a total of 3,410 from holding American Express or generate 12.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
American Express vs. EXXON MOBIL P
Performance |
| Timeline |
| American Express |
| EXXON MOBIL P |
American Express and EXXON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and EXXON
The main advantage of trading using opposite American Express and EXXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, EXXON can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in EXXON will offset losses from the drop in EXXON's long position.| American Express vs. Orix Corp Ads | American Express vs. Medallion Financial Corp | American Express vs. Oportun Financial Corp | American Express vs. SLM Corp Pb |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |